Pre-qualified vs. pre-approved: What’s the difference?

Pre-qualification and pre-approval are terms that convey eligibility for credit cards, mortgages and other loans. 

What you’ll learn:

• In credit card terms, getting pre-qualified or pre-approved means you’ve met some of the issuer’s cardholder requirements.

• Getting pre-approved or pre-qualified for a loan may not guarantee approval. 

• Pre-qualification and pre-approval won’t affect credit scores if they involve a soft inquiry.

“Pre-approved” and “pre-qualified” are sometimes used interchangeably when talking about credit cards. Both terms typically mean you’ve met the initial criteria required to become a cardholder.

But some credit card issuers might differentiate between the terms based on who initiates the process or to signal a stronger indicator of approval. But getting pre-approved or pre-qualified for a card doesn’t necessarily guarantee approval. 

So what does pre-qualified mean for a credit card? What does pre-approved mean for a credit card? Both mean an issuer did a basic review of credit reports, typically using a soft inquiry. 

• Borrower-initiated checks: To check on your own, you may have to give the issuer information like your Social Security number and monthly income so it can take a closer look at your eligibility.

• Issuer-initiated checks: If an issuer checks on its own, it typically means it defined basic eligibility criteria and then asked credit bureaus for a list of people who meet those criteria.

If a pre-qualified or pre-approval offer was evaluated using a soft inquiry, it won’t affect your credit scores. But accepting an offer could result in a hard inquiry, which FICO says will cause your credit scores to dip temporarily, usually by only a few points.

To pre-qualify or get pre-approved for a credit card, you can typically visit a credit card issuer’s website. You may also receive offers by mail, phone or email.

Requirements vary, but credit card issuers typically consider factors related to credit history and income before pre-qualifying or pre-approving someone for a credit card. Here are a few things you can do to help improve your credit and potentially receive more offers:

• Make on-time payments on your accounts.
• Maintain a low credit utilization ratio.
• Have a diverse mix of credit.

With Capital One, it’s easy to find out whether you’re pre-approved for credit card offers before you accept an offer. Just answer a few simple questions about yourself and review the offers you may be eligible for. The pre-approval process is quick, and it won’t hurt your credit scores. 

Learn more about how to get pre-approved for a Capital One credit card.

Here are the answers to a few frequently asked questions about pre-qualification and pre-approval:

Getting pre-qualified or pre-approved for a credit card means that you’ve met some initial criteria for approval with the card issuer. And that can help you apply for a card with more confidence.

Ready to get started? See if you’re pre-approved with Capital One. Simply answer some pre-approval questions, check out your eligible offers and decide which card may be right for you, with no risk to your credit scores.

New to credit or looking for your next credit card?

• Monitor your credit with CreditWise from Capital One. It’s free, even if you're not a Capital One cardholder. And using CreditWise won’t affect your credit scores.

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• Explore Capital One credit cards for building credit with responsible use.